Our total revenue for the three months ended June 30, 2016 (the "second quarter of 2016") was $196.6 million, which was the highest for any quarter in our history. Moreover, total revenue increased $53.2 million, or 37%, for the second quarter of 2016 when compared to the three months ended June 30, 2015 (the "second quarter of 2015"). Our net income was $17.7 million for the second quarter of 2016, which was the highest for any second quarter in our history and a 46% increase from the second quarter of 2015. Our Broadcast Cash Flow was $79.3 million for the second quarter of 2016, which was also the highest for any second quarter in our history and a 38% increase from the second quarter of 2015. We earned $9.6 million in political advertising revenue during the second quarter of 2016, consistent with our previous guidance. Our record-setting performance in the second quarter of 2016 resulted in basic net income per share of $0.25.

Combined Historical Basis

The results reported today also reflect organic revenue growth at Gray. On a Combined Historical Basis, as defined herein, total revenue increased 8%, net income increased 6% and Broadcast Cash Flow increased 4% in the second quarter of 2016 compared to the second quarter of 2015. In addition, on a Combined Historical Basis, our broadcast operating expenses, excluding network compensation fees, were virtually unchanged in the second quarter of 2016, when compared to the second quarter of 2015. Significantly, the expected increases in network compensation fees were offset by increases in gross retransmission revenue. Also noteworthy is that in the first six-months of 2016, when compared to the first six months of 2015 on a Combined Historical Basis, our national sales commission expenses decreased over $2.0 million as a result of our termination of substantially all of our national sales representation agreements at the beginning of 2016. We have reduced our national sales commission expenses while building a positive and direct relationship with our national sales customers.

Other Highlights

The financial results demonstrate the success of our recent acquisitions, organic revenue growth and prudent operational cost controls across our entire portfolio of television stations. In addition, we achieved additional milestones during the second quarter of 2016 as we continue to execute prudent and opportunistic transactions.

-- On June 14, 2016, we completed the private placement of $500.0 million
of 5.875% senior notes due 2026 (the "2026 Notes"), at par. The 2026
Notes represented the lowest cost, as well as the longest tenor, of any
bond issuance in Gray's history. Concurrent with the issuance of these
bonds, both S&P and Moody's raised their ratings on Gray's credit
facilities.
-- On June 3, 2016, we announced that we agreed to acquire, for $270.0
million in cash, television stations WBAY-TV (ABC) in the Green Bay,
Wisconsin television market and KWQC-TV (NBC) in the Davenport, Iowa
television market as part of the divestiture of stations resulting from
the pending merger of Nexstar Broadcasting Group, Inc. ("Nexstar") and
Media General, Inc. We anticipate that this transaction will be
completed late in 2016.
-- On June 1, 2016, we made an initial payment of $16.5 million and
acquired the non-license assets of television stations WDTV-TV (CBS) and
WVFX-TV (FOX/CW), a legal duopoly in the Clarksburg-Weston, West
Virginia television market (the "Clarksburg Acquisition"). Also, on June
1, 2016 we began to operate the stations, subject to the control of the
stations' current licensees, under a local programming and marketing
agreement (or "LMA"). We anticipate that this acquisition will be
completed late in 2016.
-- On April 14, 2016, we made a $3.0 million strategic equity investment in
Syncbak, a technology company that replicates over-the-air broadcasts
for delivery over-the-top of the Internet.
-- On June 27, 2016, we closed the previously announced acquisition of
KYES-TV (MY, Ant.) in the Anchorage, Alaska television market (the
"KYES-TV Acquisition"), for $0.5 million.
In connection with our various acquisition transactions, we incurred professional fees of approximately $0.5 million and $7.2 million in the second quarter of 2016 and the six-months ended June 30, 2016, respectively; and $0.3 million and $0.7 million in the second quarter of 2015 and the six-months ended June 30, 2015, respectively. These expenses are included in our corporate and administrative operating expenses.

As of June 30, 2016, our Total Leverage Ratio, Net of All Cash, as defined herein, was 5.25 times on a trailing eight-quarter basis, netting all $176.3 million of cash on our balance sheet against our debt balance. We maintain our previously issued guidance regarding our 2016 year-end net leverage ratio.

Effects of Acquisitions and Divestitures on Our Results of Operations

From October 31, 2013 through June 30, 2016, we completed 19 acquisition transactions and three divestiture transactions. These transactions added a net total of 43 television stations in 25 television markets to our operations, including 20 new television markets. During February 2016, we completed the acquisition of several television and radio stations from Schurz Communications, Inc. ("Schurz"); divested the assets of the Schurz radio stations; exchanged KAKE-TV for WBXX-TV and cash; and exchanged WSBT-TV for WLUC-TV (collectively the "Schurz Acquisition and Related Transactions"). During June 2016, we entered into the Clarksburg Acquisition and completed the KYES-TV Acquisition. The transactions completed during the six-months ended June 30, 2016 added the following 13 television stations to our operations:

(3) On June 1, 2016, we acquired the non-license assets of the television station and entered into an LMA, under which we operate the station,
subject to the control of the licensees. Our ultimate acquisition of the station's Federal Communications Commission license and license
related assets is pending regulatory and other approvals.

(4) We have acquired the indicated program stream in this market and are broadcasting this program stream on our previously existing station
in this market, which has changed its call letters to KOTA-TV (ABC), as well as two satellite stations that we also acquired in the Schurz
Acquisition and Related Transactions.

We refer to the stations acquired and retained and to those we operate under an LMA entered into in 2016 as the "2016 Acquired Stations." During 2015, we completed six acquisitions, which collectively added seven television stations in six markets (four new markets) to our operations at various times during that year, and we refer to the stations acquired in those acquisitions as the "2015 Acquired Stations." During 2014, we completed seven acquisitions, which collectively added 22 television stations in 12 markets (10 new markets) to our operations at various times during that year, and we refer to the stations acquired in those acquisitions as the "2014 Acquired Stations." Unless the context of the following discussions requires otherwise, we refer to the 2016 Acquired Stations, the 2015 Acquired Stations and the 2014 Acquired Stations, collectively, as the "Acquired Stations."

Due to the significant effect that our acquisitions and divestitures have had on our results of operations, and in order to provide more meaningful period over period comparisons, we also present herein certain financial information on a "Combined Historical Basis." Unless otherwise defined, Combined Historical Basis reflects financial results that have been compiled by adding Gray's historical revenue and broadcast expenses to the historical revenue and broadcast expenses of the Acquired Stations and removing the historical revenues and historical broadcast expenses of divested stations as if they had been acquired or divested, respectively, on January 1, 2014 (the beginning of the earliest period presented). In addition, our Combined Historical Basis non-GAAP terms "Broadcast Cash Flow," "Broadcast Cash Flow Less Cash Corporate Expenses," "Operating Cash Flow as Defined in our Senior Credit Agreement" and "Free Cash Flow" give effect to the financings related to the acquisition of the Acquired Stations, as if these financings occurred on January 1, 2014, and certain anticipated net expense savings resulting from the completed acquisitions. Free Cash Flow presented on a Combined Historical Basis also includes adjustments to the purchase of property and equipment and income taxes paid, net of refunds as if the acquisition of the Acquired Stations occurred on January 1, 2014. Combined Historical Basis financial information for acquisitions does not reflect all purchase accounting and other adjustments required for Regulation S-X pro forma financial statements.

(1) Excludes depreciation, amortization, and loss on disposal of assets.

(2) See definition of non-GAAP terms and reconciliation of the non-GAAP amounts to net income included elsewhere herein.

(3) 2016 periods reflect increase in cash tax payments due to anticipated use of remaining net operating loss carry-forwards in

2016. See further discussion of cash tax payments on pages 8, 11 and 15 herein.

Reclassification of Revenue

Through 2015, we reported our local television advertising revenues and our internet/digital/mobile advertising revenues separately. Beginning in 2016, we report a single line item identified as "Local (including internet/digital/mobile)" that combines both our local television advertising revenues and our internet/digital/mobile advertising revenues. Because this revenue originates within each local market in which we operate and is sold by each local sales force, we believe this classification is more consistent and more representative of our operating focus, to maximize all aspects of local revenue. All prior periods presented herein have been reclassified to reflect our current presentation.

Results of Operations for the Second Quarter of 2016

Revenue (less agency commissions) on As-Reported Basis

The table below presents our revenue (less agency commissions), or revenue, by type for the second quarter of 2016 and 2015 (dollars in thousands):

Total revenue increased $53.2 million, or 37%, to $196.6 million for the second quarter of 2016 compared to the second quarter of 2015. Total revenue from the 2016 Acquired Stations and 2015 Acquired Stations, collectively, accounted for approximately $46.8 million of our total revenue, or 88% of the increase from the second quarter of 2015, with the remaining revenue increases resulting from our stations owned since the start of 2015. The 2015 Acquired Stations did not contribute any revenue during the second quarter of 2015 because all of the 2015 Acquired Stations were acquired after June 30, 2015.

In addition to the total revenue contributed by the 2016 Acquired Stations and the 2015 Acquired Stations, our total revenue increased in the second quarter of 2016, as compared to the second quarter of 2015, primarily due to increases in retransmission revenue, due primarily to increased retransmission consent rates; and increases in political advertising revenue, due to 2016 being the "on-year" of the two-year election cycle.

The principal types of revenue for the second quarter of 2016, compared to the second quarter of 2015, were as follows:

-- Local advertising revenue (including internet/digital/mobile) increased
$21.6 million, or 26%, to $104.7 million;
-- National advertising revenue increased $7.1 million, or 38%, to $26.1
million;
-- Political advertising revenue increased $7.5 million, or 339%, to $9.6
million;
-- Retransmission consent revenue increased $13.6 million, or 37%, to $50.5
million; and
-- Other revenue increased $3.3 million, or 143%, to $5.6 million.
Within our local and national advertising revenue types, and excluding revenue attributable to the 2016 Acquired Stations and 2015 Acquired Stations, our five largest customer categories experienced the following approximate changes during the second quarter of 2016 compared to the second quarter of 2015:

On a Combined Historical Basis, total revenue increased $15.2 million, or 8%, to $198.0 million in the second quarter of 2016 as compared to the second quarter of 2015. On a Combined Historical Basis, the principal types of revenue for the second quarter of 2016, compared to the second quarter of 2015, were approximately as follows:

-- Local advertising revenue (including internet/digital/mobile) was
unchanged at $105.3 million;
-- National advertising revenue decreased $0.8 million, or 3%, to $26.2
million;
-- Political advertising revenue increased $7.5 million, or 288%, to $10.1
million;
-- Retransmission consent revenue increased $8.1 million, or 19%, to $50.8
million; and
-- Other revenue increased $0.5 million, or 9%, to $5.6 million.
Within our local and national advertising revenue types, and including revenue from the 2016 Acquired Stations and 2015 Acquired Stations, our five largest customer categories experienced the following approximate changes during the second quarter of 2016, compared to the second quarter of 2015:

Broadcast operating expenses (before depreciation, amortization and loss on disposal of assets) increased $30.9 million, or 36%, to $117.3 million for the second quarter of 2016 compared to the second quarter of 2015. The 2016 Acquired Stations and 2015 Acquired Stations, collectively, accounted for approximately $28.0 million of our broadcast operating expenses, or 91% of the increase from the second quarter of 2015. The 2015 Acquired Stations had no effect on our broadcast operating expenses for the second quarter of 2015 because all of the 2015 Acquired Stations were acquired after June 30, 2015.

-- Non-compensation expense increased $15.2 million in the second quarter
of 2016. Non-compensation expenses associated with the 2016 Acquired
Stations and 2015 Acquired Stations totaled $12.4 million in the second
quarter of 2016. Other network program fees increased $2.7 million
reflecting increased fees payable to networks under our affiliation
agreements. National sales commissions decreased $0.8 million in the
second quarter of 2016 primarily as a result of the termination of
substantially all of our national sales representation agreements at the
beginning of 2016.
-- Compensation expense increased $15.7 million in the second quarter of
2016 as a result of compensation expenses attributable to the 2016
Acquired Stations and 2015 Acquired Stations. Non-cash share based
compensation expenses were $0.3 million in the second quarter of 2016
compared to $0.2 million in the second quarter of 2015.
Broadcast Operating Expenses on Combined Historical Basis

On a Combined Historical Basis, broadcast operating expenses (before depreciation, amortization and loss on disposal of assets) increased $5.6 million, or 5%, to $118.2 million in the second quarter of 2016 as compared to the second quarter of 2015. The increase reflects, in part, the following:

-- Non-compensation expense increased primarily as a result of network
program fees that increased $5.4 million consistent with the growth of
retransmission consent revenue.
-- Non-compensation expense increases were offset, in-part, by a $1.2
million decrease in national sales commissions in the second quarter of
2016 resulting from our termination of substantially all of our national
sales representation agreements in the first quarter of 2016.
-- Compensation expense increased by approximately $1.5 million in the
second quarter of 2016 compared to the second quarter of 2015. Non-cash
share based compensation expenses were $0.3 million in the second
quarter of 2016 compared to $0.2 million in the second quarter of 2015.
Corporate and Administrative Operating Expenses on As-Reported Basis

Corporate and administrative expenses (before depreciation, amortization and loss on disposal of assets) increased $2.1 million, or 32%, to $8.5 million in the second quarter of 2016 as compared to the second quarter of 2015. The increase reflects, in part, the following:

-- Non-compensation expense increased $1.6 million in the second quarter of
2016 primarily due to $2.3 million of professional fees related,
in-part, to the acquisition of the 2016 Acquired Stations, compared to
$1.2 million of professional fees incurred in the second quarter of 2015
related, in-part, to the acquisition of the 2015 Acquired Stations.
-- Compensation expense increased $0.5 million primarily due to increases
in incentive compensation and travel costs which were offset, in part,
by reductions in relocation expenses. Non-cash share based compensation
expenses were $1.0 million in the second quarter of 2016 compared to
$0.8 million in the second quarter of 2015.
Cash Tax Payments

As previously disclosed, Gray anticipates fully utilizing its remaining federal net operating loss carryforwards ("NOLs") by December 31, 2016. During the three months ended June 30, 2016, the Company made aggregate federal and state estimated tax payments totaling $13.9 million compared to $1.0 million for the three months ended June 30, 2015. Based on our current forecasts, we anticipate that our aggregate federal and state tax payments for the entire year of 2016 will range between $16.0 million and $21.0 million.

Results of Operations for the Six-Month Period Ended June 30, 2016

Revenue (less agency commissions) on As-Reported Basis

The table below presents our revenue (less agency commissions), or revenue, by type for the six-month periods ended June 30, 2016 and 2015 (dollars in thousands):

Total revenue increased $93.6 million, or 34%, to $370.4 million for the six-months ended June 30, 2016 compared to the six-months ended June 30, 2015. Revenue from the 2016 Acquired Stations and 2015 Acquired Stations, collectively, accounted for approximately $77.5 million of our total revenue, or 83% of the increase from the six-months ended June 30, 2015. The 2015 Acquired Stations did not contribute any revenue during the six-months ended June 30, 2015 because all of the 2015 Acquired Stations were acquired after June 30, 2015.

In addition to the total revenue contributed by the 2016 Acquired Stations and the 2015 Acquired Stations, our total revenue increased in the six-months ended June 30, 2016, as compared to the six-months ended June 30, 2015, primarily due to increases in retransmission revenue, due primarily to increased retransmission consent rates; and increases in political advertising revenue, due to 2016 being the "on-year" of the two-year election cycle. Local and national advertising revenue also included approximately $2.1 million of revenue from the broadcast of the 2016 Super Bowl on our CBS channels, an increase of approximately $0.6 million compared to the $1.5 million of revenue from the broadcast of the 2015 Super Bowl on our NBC channels.

The principal types of revenue for the six-months ended June 30, 2016 compared to the six-months ended June 30, 2015 were as follows:

-- Local advertising revenue increased $36.1 million, or 23%, to $194.1
million;
-- National advertising revenue increased $11.4 million, or 31%, to $48.1
million;
-- Political advertising revenue increased $15.9 million, or 475%, to $19.3
million;
-- Retransmission consent revenue increased $24.7 million, or 34%, to $97.8
million; and
-- Other revenue increased $5.4 million, or 97%, to $11.0 million.
Within our local and national advertising revenue categories, and excluding the 2016 Acquired Stations and 2015 Acquired Stations, our five largest customer categories experienced the following approximate changes during the six-months ended June 30, 2016 compared to the six-months ended June 30, 2015:

On a Combined Historical Basis, total revenue increased $35.1 million, or 10%, to $387.1 million in the six-months ended June 30, 2016 as compared to the six-months ended June 30, 2015. The Combined Historical Basis components of revenue for the six-months ended June 30, 2016 compared to the six-months ended June 30, 2015 were approximately as follows:

-- Local advertising revenue increased $2.9 million, or 1%, to $203.2
million;
-- National advertising revenue decreased $1.6 million, or 3%, to $50.5
million;
-- Political advertising revenue increased $16.1 million, or 420%, to $20.0
million;
-- Retransmission consent revenue increased $17.0 million, or 20%, to
$101.5 million; and
-- Other revenue increased $0.8 million, or 7%, to $11.9 million.
Within our local and national advertising revenue categories, and including revenue attributable to the 2016 Acquired Stations and 2015 Acquired Stations, our five largest customer categories experienced the following approximate changes in revenue during the six-months ended June 30, 2016 compared to the six-months ended June 30, 2015:

Broadcast operating expenses (before depreciation, amortization and loss (gain) on disposal of assets) increased $52.6 million, or 30%, to $225.9 million for the six-months ended June 30, 2016 compared to the six-months ended June 30, 2015. The 2016 Acquired Stations and 2015 Acquired Stations, collectively, accounted for approximately $46.3 million of our total broadcast operating expenses, or 88% of the increase from the six-months ended June 30, 2015. The 2015 Acquired Stations had no effect on our broadcast operating expenses for the six-months ended June 30, 2015 as the 2015 Acquired Stations were acquired after June 30, 2015.

-- Non-compensation expense increased $26.3 million for the six-months
ended June 30, 2016. Non-compensation expenses associated with the 2016
Acquired Stations and 2015 Acquired Stations totaled $20.5 million in
the six-months ended June 30, 2016. Other network program fees increased
$5.7 million, reflecting increased fees payable to networks under our
affiliation agreements. National sales commissions decreased $1.8
million in the six-months ended June 30, 2016, primarily as a result of
the termination of substantially all of our national sales
representation agreements at the beginning of 2016.
-- Compensation expense increased $26.3 million in the six-months ended
June 30, 2016, primarily as a result of $25.8 million compensation
expenses attributable to the 2016 Acquired Stations and 2015 Acquired
Stations. Non-cash share based compensation expenses were $0.6 million
in the six-months ended June 30, 2016 compared to $0.5 million in the
six-months ended June 30, 2015.
Broadcast Operating Expenses on Combined Historical Basis

On a Combined Historical Basis, broadcast operating expenses (before depreciation, amortization and loss (gain) on disposal of assets) increased $15.3 million, or 7%, to $240.4 million in the six-months ended June 30, 2016 compared to the six-months ended June 30, 2015. The increase reflects, in part, the following:

-- Non-compensation expense increased primarily as a result of network
program fees that increased $10.9 million consistent with the growth of
the related retransmission consent revenue.
-- Non-compensation expense increases were offset, in-part, by decreases in
national sales commissions of $2.2 million in the six-months ended June
30, 2016, resulting from our termination of substantially all of our
national sales representation agreements in the first quarter of 2016.
-- Compensation expense increased $5.3 million in the six-months ended June
30, 2016. Non-cash share based compensation expenses were $0.6 million
in the six-months ended June 30, 2016 compared to $0.5 million in the
six-months ended June 30, 2015.
Corporate and Administrative Operating Expenses on As-Reported Basis

Corporate and administrative expenses (before depreciation, amortization and loss (gain) on disposal of assets) increased $10.9 million, or 82%, to $24.2 million in the six-months ended June 30, 2016 compared to the six-months ended June 30, 2015. The increase reflects, in part, the following:

-- Non-compensation expense increased $10.1 million in the six-months ended
June 30, 2016 due to $11.6 million of professional fees, primarily
related to the acquisition of the 2016 Acquired Stations compared to
$2.3 million of professional fees incurred in the six-months ended June
30, 2015, primarily related to the acquisition of the 2015 Acquired
Stations.
-- Compensation expense increased $0.8 million primarily due to increases
in incentive compensation costs which were offset, in-part, by
reductions in relocation expenses. Non-cash share based compensation
expenses were $1.9 million in the six-months ended June 30, 2016
compared to $1.5 million in the six-months ended June 30, 2015.
Cash Tax Payments

As previously disclosed, Gray anticipates fully utilizing its remaining NOLs by December 31, 2016. During the six months ended June 30, 2016, the Company made aggregate federal and state estimated tax payments totaling $14.0 million compared to $1.2 million for the six months ended June 30, 2015. Based on our current forecasts, we anticipate that our aggregate federal and state tax payments for the entire year of 2016 will range between $16.0 million and $21.0 million.

Guidance for the Three-Months Ending September 30, 2016 (the "third quarter of 2016")

Based on our current forecasts for the third quarter of 2016, we anticipate the changes from the three-months ended September 30, 2015 (the "third quarter of 2015") as outlined below. Our estimates for the third quarter of 2016 include approximately $49.0 million of revenue and $29.8 million of broadcast operating expense estimated to be contributed by the 2016 Acquired Stations and 2015 Acquired Stations. The 2015 Acquired Stations accounted for $8.3 million of revenue and $4.6 million of broadcast operating expense, which were included in our as-reported third quarter of 2015 results of operations.

Based on our current forecasts for the third quarter of 2016, we anticipate the following changes from the third quarter of 2015, as outlined below:

-- We believe our third quarter of 2016 local advertising revenue
(including internet/digital/mobile) will increase within a range of
approximately 23% to 25%.
-- We expect our third quarter of 2016 national advertising revenue will
increase within a range of approximately 24% to 29%.
-- We believe our third quarter of 2016 political advertising revenue will
be within a range of approximately $40.0 million to $46.0 million. Our
political advertising revenue was approximately $4.6 million in the
third quarter of 2015; approximately $22.0 million in the third quarter
of 2014; and approximately $24.5 million in the third quarter of 2012.
-- We believe our third quarter of 2016 retransmission consent revenue will
be within a range of approximately $50.0 million to $50.5 million.
-- The 2016 Olympic broadcasts are anticipated to generate at least $7.3
million of advertising revenue for the Company. This amount is included
in our overall guidance for local advertising revenue (including
internet/digital/mobile) and national advertising revenue.
Broadcast Operating Expenses (before depreciation, amortization and gain or loss on disposal of assets, net) on As-Reported Basis

For the third quarter of 2016, we anticipate our broadcast operating expenses will increase from the third quarter of 2015, reflecting the $25.2 million incremental impact of the 2016 Acquired Stations and the 2015 Acquired Stations as well as anticipated increases in payroll and related employee benefits. We anticipate that our broadcast operating expenses will also reflect an increase in network fees of approximately $6.9 million (to total approximately $24.9 million for the third quarter of 2016).

For the third quarter of 2016, we anticipate our corporate and administrative operating expense will decrease to within a range of approximately $7.0 million to $8.0 million, primarily attributable to decreases in professional services fees related to acquisitions offset, in-part, by routine increases in compensation and professional service fees.

Third Quarter of 2016 on Combined Historical Basis

Based on our current forecasts for the third quarter of 2016, we anticipate the following changes from the Combined Historical Basis results for the third quarter of 2015 as outlined below. For the purposes hereof, our Combined Historical Basis for the third quarter of 2015 have been adjusted to give effect to both the 2016 Acquired Stations and 2015 Acquired Stations.

Revenue on Combined Historical Basis

-- We believe our third quarter of 2016 total revenue will be within a
range of approximately $223.0 million to $231.0 million (or increase
approximately +22% to +26%).
-- We believe our third quarter of 2016 local advertising revenue
(including internet/digital/mobile) will be within a range of
approximately $103.0 million to $105.0 million (or increase
approximately +2% to +4%).
-- We believe our third quarter of 2016 national advertising revenue will
be within a range of approximately $26.0 million to $27.0 million (or
change approximately -5% to -1%).
-- We believe our third quarter of 2016 political advertising revenue will
be within a range of approximately $40.0 million to $46.0 million. Our
political advertising revenue was approximately $5.1 million in the
third quarter of 2015; approximately $33.7 million in the third quarter
of 2014; and approximately $42.3 million in the third quarter of 2012.
-- We believe our third quarter of 2016 retransmission consent revenue will
be within a range of approximately $50.0 million to $50.5 million (or
increase approximately +13% to +14%).
Broadcast Operating Expenses (before depreciation, amortization and gain or loss on disposal of assets) on Combined Historical Basis

Our total broadcast operating expenses for the third quarter of 2016 are anticipated to increase from the third quarter of 2015 on a Combined Historical Basis by a range of approximately $2.5 million to $4.5 million (to total within a range of approximately $123.0 million to $125.0 million). This increase reflects an expected increase of $5.1 million in network fees (expected to total approximately $24.9 million).

Cash Tax Payments

As previously disclosed, Gray anticipates fully utilizing its remaining NOLs by December 31, 2016. Based on our current forecasts, we anticipate that our aggregate federal and state tax payments for the third quarter of 2016 will range between $1.0 million and $3.5 million. During the six months ended June 30, 2016, the Company made aggregate federal and state estimated tax payments totaling $14.0 million. Based on our current forecasts, we anticipate that our aggregate federal and state tax payments for the entire year of 2016 will range between $16.0 million and $21.0 million.

Non-GAAP Terms

From time to time, Gray supplements its financial results prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") by disclosing the non-GAAP financial measures Broadcast Cash Flow, Broadcast Cash Flow Less Cash Corporate Expenses, Operating Cash Flow as defined in Gray's Senior Credit Agreement ("Operating Cash Flow"), Free Cash Flow and Total Leverage Ratio, Net of All Cash. These non-GAAP amounts are used by us to approximate the amount used to calculate key financial performance covenants contained in our debt agreements and are used with our GAAP data to evaluate our results and liquidity. These non-GAAP amounts may be provided on an As-Reported Basis as well as a Combined Historical Basis.

We define Broadcast Cash Flow as net income plus loss from early extinguishment of debt, corporate and administrative expenses, broadcast non-cash stock based compensation, depreciation and amortization (including amortization of intangible assets and program broadcast rights), any loss on disposal of assets, any miscellaneous expense, interest expense, any income tax expense, non-cash 401(k) expense less any gain on disposal of assets, any miscellaneous income, any income tax benefits, payments for program broadcast obligations and network compensation revenue.

We define Broadcast Cash Flow Less Cash Corporate Expenses as net income plus loss from early extinguishment of debt, non-cash stock based compensation, depreciation and amortization (including amortization of intangible assets and program broadcast rights), any loss on disposal of assets, any miscellaneous expense, interest expense, any income tax expense, and non-cash 401(k) expense, less any gain on disposal of assets, any miscellaneous income, any income tax benefits, payments for program broadcast obligations and network compensation revenue.

We define Operating Cash Flow as Combined Historical Basis net income plus loss from early extinguishment of debt, non-cash stock based compensation, depreciation and amortization (including amortization of intangible assets and program broadcast rights), any loss on disposal of assets, any miscellaneous expense, interest expense, any income tax expense, non-cash 401(k) expense and pension expenses less any gain on disposal of assets, any miscellaneous income, any income tax benefits, payments for program broadcast obligations, network compensation revenue and cash contributions to pension plans.

We define Free Cash Flow as net income plus loss from early extinguishment of debt, non-cash stock based compensation, depreciation and amortization (including amortization of intangible assets and program broadcast rights), any loss on disposal of assets, any miscellaneous expense, amortization of deferred financing costs, any income tax expense, non-cash 401(k) expense and pension expense, less any gain on disposal of assets, any miscellaneous income, any income tax benefits, payments for program broadcast obligations, network compensation revenue, contributions to pension plans, amortization of original issue discount on our debt, capital expenditures (net of any insurance proceeds) and the payment of income taxes (net of any refunds received).

Our Total Leverage Ratio, Net of All Cash is calculated as our Operating Cash Flow for the preceding eight quarters, divided by two, which is then divided by our long term debt, excluding net premiums and net deferred financing costs, but including any other debt, net of all cash.

These non-GAAP terms are not defined in GAAP and our definitions may differ from, and therefore not be comparable to, similarly titled measures used by other companies, thereby limiting their usefulness. Such terms are used by management in addition to and in conjunction with results presented in accordance with GAAP and should be considered as supplements to, and not as substitutes for, net income and cash flows reported in accordance with GAAP.

We are a television broadcast company headquartered in Atlanta, Georgia, that owns and operates television stations and leading digital assets in markets throughout the United States. We own and/or operate television stations in 51 television markets that broadcast over 185 separate program streams, including 36 channels affiliated with CBS, 27 channels affiliated with NBC, 19 channels affiliated with ABC and 14 channels affiliated with FOX. We own the number-one or number-two ranked television station operations in 50 of those 51 markets. Our stations reach approximately 9.5 percent of total United States television households.

Cautionary Statements for Purposes of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act

This press release contains statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the federal securities laws. These "forward-looking statements" are not statements of historical facts, and may include, among other things, statements regarding our current expectations and beliefs of operating results for the third quarter of 2016 or other periods, the impact of recently completed transactions, future expenses and other future events. Actual results are subject to a number of risks and uncertainties and may differ materially from the current expectations and beliefs discussed in this press release. All information set forth in this release is as of August 4, 2016. We do not intend, and undertake no duty, to update this information to reflect future events or circumstances. Information about certain potential factors that could affect our business and financial results and cause actual results to differ materially from those expressed or implied in any forward-looking statements are included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," in our Annual Report on Form 10-K for the year ended December 31, 2015 and may be contained in reports subsequently filed with the U.S. Securities and Exchange Commission (the "SEC") and available at the SEC's website at www.sec.gov.

Conference Call Information

We will host a conference call to discuss our second quarter operating results on August 4, 2016. The call will begin at 11:00 AM Eastern Time. The live dial-in number is 1 (866) 249-5224 and the confirmation code is 3173477. The call will be webcast live and available for replay at www.gray.tv. The taped replay of the conference call will be available at 1 (888) 203-1112, Confirmation Code: 3173477 until September 3, 2016.